Goldman Sachs has become the first Wall Street bank to emerge from the credit crisis with a third quarter profit rise, smashing analysts' expectations with a 79% surge in net profits, despite taking the largest hit on non-investment grade credit among its rivals.

Net profits rose to $2.9bn in the three months to the end of August, while revenues rose more than two-thirds to $12bn, while the bank's earnings of $6.13 a share beat analysts estimates of $4.35 by 40%.